LIC Focuses on Profitable Growth Despite Market Share Dip, Bets Big on Non-Par Products

Life Insurance Corporation of India (LIC), the country’s largest insurer, remains unfazed by a marginal drop in market share amid rising competition. In Q1FY26, LIC’s premium market share fell to 63.51% from 64.02% a year ago, while policy share dipped to 63.07% from 66.54%.

R Doraiswamy, MD & CEO of LIC, noted that such changes are expected in a competitive market.

“When we were a monopoly, 100% market share was with us. With 25-26 competitors now, some decline is natural,” Doraiswamy said.

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Profitable Growth Over Market Share

Rather than chasing market share, LIC is focusing on sustained, profitable growth. The insurer aims for high single-digit to low double-digit growth in annualised premium equivalent (APE) terms, ensuring steady contribution to overall industry growth.

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Push for Non-Par Products

A key strategic shift is LIC’s increased emphasis on Non-Participating (Non-Par) products—plans that provide guaranteed benefits on maturity, appealing to younger policyholders seeking certainty.

Non-Par products’ share in individual APE rose to 30% in June 2025, up from 24% in June 2024, surpassing the 7% target set during LIC’s IPO. LIC now plans to push this share to 40% in the coming years.

These products include savings, protection, annuity, and ULIP plans, with recent launches entirely in the Non-Par segment.

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Balancing Par and Non-Par

Having achieved strong growth in the Non-Par portfolio, LIC will now balance focus between Participating (Par) and Non-Par products to capture a wider customer base while ensuring long-term profitability.